Kepuni, a Marine Equipment Maker in China, Files for US Listing

The small-cap, profitable company seeks to boost its sales with the new capital.
Jan. 11, 2022 17:50
Kepuni, a Marine Equipment Maker in China, Files for US Listing

(CapitalWatch, Jan. 11, New York) Kepuni Holdings Inc., specializing in marine communications and electronic equipment industries, has filed for a U.S. initial public offering, seeking to raise approximately $30 million.

Kepuni operates through a variable interest entity (VIE) based in China's Taizhou City, Jiangsu province. According to the company's prospectus, the company was certified by the government as a high-tech enterprise "integrating schematic designs, research and development, and supporting marine communication for marine engineering, ship communication, navigation, driving control and power distribution equipment."

The company makes customized, built-to-order products for the ocean, integrating nautical communications and telecommunications electrical systems. According to Kepuni, "The major products and services include engineering supporting communication and telecommunications electrical systems and devices, integrated information management systems, nautical internal communication systems, nautical automation (control) systems, and navigational driving consoles and power distribution systems."

For the half-year through June 2021, Kepuni reported $6.1 million in revenue on $1.1 million net income. To compare, the company booked $3.2 million revenue on $326,027 income in the six months through June 2020.

As a growth strategy, Kepuni said it plans to boost sales by improving training for sales professionals, increasing brand recognition through promotion, providing "satisfactory and high-quality" customer service, and better adapting to market changes.

In its prospectus, Kepuni included a disclaimer on the risks related to its VIE structure. Further, Kepuni noted risks related to the Holding Foreign Companies Accountable Act (HFCAA). According to the filing, the company's auditor, WWC P.C., was last inspected by the PCAOB in November 2021. 

Kepuni expects to become publicly traded on the Nasdaq Capital Market under the symbol "KPNT." Boustead Securities LLC is underwriting the IPO.